Giving people an option to work past 66 is a good idea in principle, but the maths means it's not worth it.
That's according to consumer journalist and host of The Home Show, Sinead Ryan.
She was speaking as people will still be able to retire at 66 - but will get an increased payment for every extra year they work up to age 70.
Those who work until 70 will qualify for weekly payments of €315.
The figures are based on today's pension rates and are open to change.
Social Protection Minister Heather Humphreys has said payments will rise.
"These payments will increase as the basic pension increases every year, or whatever budget decision is made.
"Over years the differential will get greater, so it'll be higher as the percentages are added on every year.
"It's about choices", she added.
Here are the estimated payment rates pic.twitter.com/LDSGGuYHPv
— Seán Defoe (@SeanDefoe) September 20, 2022
Sinead told The Hard Shoulder she likes the idea, but the numbers based on today aren't worth it.
"I think it's a good idea in principle - we know that there's all kinds of problems with people retiring too early, too late, on not enough.
"So I think any flexibility which gets rid of this notion of 66 being the cut-off age is good.
"Life expectancy is so long now, most of us will live 20 or more years in retirement - maybe 25 years in retirement.
"So you have a plan to fund that - and letting people who want to work, who can work, work a little bit later well why not.
"So think in theory it's a good idea."
However she said the maths being used is "head-scratching".
"I've calculated somebody who, instead of retiring at 66, they're now going to be retiring at 70.
"So you'd normally get €250 a week - this is the State pension - and you'll be able to get up to €315 a week if you wait until your 70th birthday instead of 66.
"That means you're going to be foregoing about €52,500 - that's if the rates don't change at all.
"So €52,500, which is four years worth of pension, for an uplift of €62 a week.
"Based on that, it would take 848 weeks, or 16 years, to make up that difference".
She said this option is only available to those whose employer allows it.
"I know there are actuaries who do say this doesn't make any sense mathematically - it makes sense from a social perspective, maybe people want to keep engaged longer - I get all that.
"But the maths alone doesn't make it worthwhile.
"And remember this is only going to suit people where... their employer permits it.
"I'm all for the flexibility and I'm all for that ability, as long as this is not the thin end of the wedge towards getting to the point where we're saying 'Actually we said it was flexible, but now it's mandatory'".
